"Some cause happiness wherever they go; others whenever they go." As we strive to be counted among the former, let us focus on four possible solutions to our state's historic over-dependence on regressive property taxes.

First is the so-called "Millionaires' Tax." As you have probably heard, New Jersey Policy Perspective President Jon Shure originally floated a proposal to help close New Jersey's budget gap with a temporary increase in income tax rates on those who have benefited most from our state's economy. This proposal gained the support of Assembly Speaker and West New York Mayor Albio Sires. Further, we received correspondence from the Ninth District Legislative Delegation, which indicates the willingness of respected Legislators from "the other side of the aisle" to support this initiative, if the proceeds are dedicated to property tax relief. Accordingly, we support the efforts of a coalition of groups, which advocate temporary rate increases on the top 2 percent of New Jersey wage earners. We hope to see relief for our property taxpayers from this source.

Second, the Governor has proposed a new 7 percent tax on overnight accommodations. A yet to be specified portion of the estimated $140 million proceeds will be distributed to host municipalities, while the state will retain a share. All across the nation, state and local jurisdictions impose such surcharges to protect their resident taxpayers from the full cost of the service burden caused by these establishments. We support this proposal, as we have supported similar initiatives in the past.

Third is the application of the state sales tax to electronic commerce. A federal moratorium of such taxes is set to expire this November. For the most part, here in New Jersey, local governments don't collect sales taxes. But the state relies heavily on its 6 percent levy. Internet tax freedom threatens these revenues in two ways.
Obviously, the first is that it puts a large and continually increasing number of purchases beyond the reach of the State Division of Taxation. But the second threat of tax-free electronic commerce is, potentially, much more devastating. It gives electronic merchants a competitive advantage over those who maintain a physical presence in the community. The tax exemption encourages people to spend more on the internet and, consequently, less on Main Street or in our many fine suburban malls. We have contacted the Administration to indicate our support for appropriate actions to address this inequity.

Finally, with an eye to the future, we reiterate our support for S478/A-540, which calls for a constitutional convention to rework the state tax system. And we call on the Legislature to give the people of this state the power to decide for themselves if and how to finally free our state from property tax dependency.

FROM 407 WEST STATE STREET..... Relief Proposals Are Out There. We'll Work to Bring Them Home. "Some cause happiness wherever they go; others whenever they go." As we strive to be counted among the former, let us focus on four possible solutions to our state's historic over-dependence on regressive property taxes. First is the so-called "Millionaires' Tax." As you have probably heard, New Jersey Policy Perspective President Jon Shure originally floated a proposal to help close New Jersey's budget gap with a temporary increase in income tax rates on those who have benefited most from our state's economy. This proposal gained the support of Assembly Speaker and West New York Mayor Albio Sires. Further, we received correspondence from the Ninth District Legislative Delegation, which indicates the willingness of respected Legislators from "the other side of the aisle" to support this initiative, if the proceeds are dedicated to property tax relief. Accordingly, we support the efforts of a coalition of groups, which advocate temporary rate increases on the top 2 percent of New Jersey wage earners. We hope to see relief for our property taxpayers from this source. Second, the Governor has proposed a new 7 percent tax on overnight accommodations. A yet to be specified portion of the estimated $140 million proceeds will be distributed to host municipalities, while the state will retain a share. All across the nation, state and local jurisdictions impose such surcharges to protect their resident taxpayers from the full cost of the service burden caused by these establishments. We support this proposal, as we have supported similar initiatives in the past. Third is the application of the state sales tax to electronic commerce. A federal moratorium of such taxes is set to expire this November. For the most part, here in New Jersey, local governments don't collect sales taxes. But the state relies heavily on its 6 percent levy. Internet tax freedom threatens these revenues in two ways. Obviously, the first is that it puts a large and continually increasing number of purchases beyond the reach of the State Division of Taxation. But the second threat of tax-free electronic commerce is, potentially, much more devastating. It gives electronic merchants a competitive advantage over those who maintain a physical presence in the community. The tax exemption encourages people to spend more on the internet and, consequently, less on Main Street or in our many fine suburban malls. We have contacted the Administration to indicate our support for appropriate actions to address this inequity. Finally, with an eye to the future, we reiterate our support for S478/A-540, which calls for a constitutional convention to rework the state tax system. And we call on the Legislature to give the people of this state the power to decide for themselves if and how to finally free our state from property tax dependency.